Xstrata Says Cost Of Mine To Climb

By

Robb M. Stewart

Dec. 25, 2012 5:38 p.m. ET

MELBOURNE—Xstrata PLC has raised its estimate for the initial cost of a planned copper-and-gold mine in Papua New Guinea, partly reflecting U.S. dollar depreciation in recent years which has lifted mining costs, its minority partner in the project said.

The initial cost will be US$300 million higher than had been estimated in 2010 at $5.6 billion, Australia's Highland Pacific Ltd. said in a stock exchange statement.